Infinite Group (OTCMKTS:IMCI) & PDF Solutions (NASDAQ:PDFS) Head to Head Comparison

PDF Solutions (NASDAQ:PDFS) and Infinite Group (OTCMKTS:IMCI) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares PDF Solutions and Infinite Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PDF Solutions	-1.67%	2.78%	2.18%
Infinite Group	N/A	N/A	N/A

Valuation & Earnings

This table compares PDF Solutions and Infinite Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PDF Solutions	$165.84 million	6.67	$3.11 million	$0.05	571.00
Infinite Group	$7.00 million	0.00	-$3.56 million	($5.03)	0.00

PDF Solutions has higher revenue and earnings than Infinite Group. Infinite Group is trading at a lower price-to-earnings ratio than PDF Solutions, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

79.5% of PDF Solutions shares are owned by institutional investors. 11.2% of PDF Solutions shares are owned by company insiders. Comparatively, 35.0% of Infinite Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

PDF Solutions has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Infinite Group has a beta of -0.19, suggesting that its stock price is 119% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PDF Solutions and Infinite Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDF Solutions	0	0	2	0	3.00
Infinite Group	0	0	0	0	N/A

PDF Solutions currently has a consensus target price of $41.00, indicating a potential upside of 43.61%. Given PDF Solutions’ higher probable upside, research analysts clearly believe PDF Solutions is more favorable than Infinite Group.

Summary

PDF Solutions beats Infinite Group on 11 of the 13 factors compared between the two stocks.

About PDF Solutions

PDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, China, Japan, and internationally. The company offers Exensio software products, such as Manufacturing Analytics that store collected data in a common environment with a consistent view for enabling product engineers to identify and analyze production yield, performance, reliability, and other issues; Process Control that provides failure detection and classification capabilities for monitoring, alarming, and controlling manufacturing tool sets; Test Operations that offer data collection and analysis capabilities; and Assembly Operations that provide device manufacturers with the capability to link assembly and packaging data, including fabrication and characterization data over the product life cycle. It also provides Design-For-Inspection (DFI) systems, such as DFI On-Chip Instruments; eProbe Non-Contact E-Beam Tool; and Characterization Vehicle (CV) system, which includes CV Test Chips and pdFasTest Electrical Testers, as well as Exensio characterization software, designed to analyze the measurements collected using the eProbe tool. In addition, the company offers Cimetrix software products that enables equipment manufacturers to provide industry standard interfaces on their products; and software-as-a-service, software related services, and characterization services. It sells its technologies and services through direct sales force, service teams, and strategic alliances to integrated device manufacturers, fabless semiconductor companies, foundries, equipment manufacturers, electronics manufacturing suppliers, original device manufacturers, out-sourced semiconductor assembly and test, and system houses. PDF Solutions, Inc. was founded in 1991 and is headquartered in Santa Clara, California.

About Infinite Group

Infinite Group, Inc. develops cybersecurity software in the United States. The company offers Nodeware, a patented software-as-a-service solution that automates network asset identification, and cybersecurity vulnerability management and monitoring; and distributes Webroot, a cloud-based endpoint security platform solution. It also provides cybersecurity consulting services that include incident response, security awareness training, risk management, IT governance and compliance, security assessment, and penetration testing offerings to channel partners and direct customers for various vertical markets, such as banking, manufacturing, supply chain, and technology. In addition, the company offers managed support services related to information security, including troubleshooting, backend analysis, and technical and security support for mission critical technical infrastructure; and sells third party software licenses. The company was formerly known as Infinite Machines Corp. and changed its name to Infinite Group, Inc. in January 1998. Infinite Group, Inc. was incorporated in 1986 and is headquartered in Pittsford, New York.